- Meanwhile, Pinocchio's sitting in the Great Stromboli's caravan while the famed performer eats and raves about his new star's performance.
- In other words, Pinocchio made a ton of money tonight. Well, he didn't make it—Stromboli keeps everything for himself…except for a metal washer someone tried to pass off as a coin.
- Still, Pinocchio is proud, and he says that he'll tell his father about his accomplishments. Naturally, Stromboli doesn't allow this—he tosses Pinocchio in a cage and locks it tight.
- If Pinocchio doesn't do his job, the Great Stromboli says, then he's going to be firewood.
- After Stromboli leaves, Pinocchio struggles with the cage. Suddenly, the room starts moving. Uh oh. Stromboli's skipping town.
- Pinocchio cries out for Jiminy, even whistles, but there's no response. Zip. Zilch.
- In fact, Jiminy is actually watching the cart leave town, but assumes that Pinocchio's going under his own volition. He starts to walk away, but decides to wish the kid good luck with his new career.
- Jiminy creeps inside the cart. After hearing Pinocchio's story, he tries to bust the lock open.
- It doesn't work. Jiminy says that it would "take a miracle."
- We cut to Geppetto watching the cart ride past. Ah, dude, if you only knew what was on the inside.
- Meanwhile, Pinocchio and Jiminy are crying their little eyes out. Suddenly, they look out the window and see a familiar sight—the wishing star.
- The Blue Fairy appears. She asks Pinocchio why he didn't go to school.
- Pinocchio starts telling the story, but quickly starts fibbing, calling the two guys who found him "monsters." With this lie, his wooden nose starts growing.
- As he continues lying and embellishing details, his nose grows longer and longer, sprouting leaves, flowers, and even a bird nest. Weird stuff, man.
- The Blue Fairy explains that lies always keep growing and growing, just like Pinocchio's nose. A little lesson for the kids, you know.
- She makes Pinocchio's nose shrink and unlocks the cage. Jiminy and Pinocchio scramble back toward town.